The Harding Company manufactures skates. The companys income statement for 2013 is as follows:

HARDING COMPANY
Income Statement
For the Year Ended December 31, 2013
Sales (11,100 skates @ $72 each)	$	799,200
Variable costs (11,100 skates at $31)		344,100
Fixed costs		260,000
Earnings before interest and taxes (EBIT)	$	195,100
Interest expense		65,500
Earnings before taxes (EBT)	$	129,600
Income tax expense (30%)		38,880
Earnings after taxes (EAT)	$	90,720

a.	Compute the degree of operating leverage. (Round your answer to 2 decimal places.)

Degree of operating leverage

b.	Compute the degree of financial leverage. (Round your answer to 2 decimal places.)

Degree of financial leverage

c.	Compute the degree of combined leverage. (Round your answer to 2 decimal places.)

Degree of combined leverage

d.	Compute the break-even point in units (number of skates). (Round your answer to the nearest whole number.)

Break-even point

skates